PAY IN FOREX : HRE COUNCIL ORDERED

A local supplier has won a case against the Harare City Council which wanted to pay in local currency when the quote was in foreign currency.

The municipality was arguing that it should settle the US$468 000 using a 1:1 United States to local currency conversion rate. Bitumen products supplier Furbank Trading was, however, granted an arbitral award after challenging the local authority’s plans to settle the bill in local currency.

Newsday reports that the municipality had filed a court application for the setting aside of an arbitral award rendered by Thomas Alexander Taylor in favour of Furbank Trading.

Furbank Trading had submitted a claim for arbitration stating that sometime in July 2018, it was awarded a tender for the supply and delivery of bitumen products for emergency road rehabilitation.

A contract was subsequently executed between the parties for the supply and delivery of bitumen products.

City of Harare ordered bitumen products and Furbank supplied the same for US$468 855.

In May 2019, Furbank presented an invoice to council.

City of Harare acknowledged its indebtedness to Furbank through a memorandum dated May 31, 2019, but the debt was not settled, resulting in the matter being referred to arbitration.

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